The US national debt has been in the news recently after Elon Musk raised his concerns that it has reached unsustainable levels.
In December 2024, the US debt hit a record high of $36 trillion, eclipsing the country’s GDP of $29.37 trillion.
The US debt currently stands at 125% of the country’s GDP, and some experts project that it will reach 200% by 2050.
Source: report.az
US debt accounts for about 34.6% of the world’s total government debt, which is estimated to be around $102 trillion.
Data: visualcapitalist.com
The US has the world’s highest total federal debt, larger than the next four countries with the highest debt combined.
Data: visualcapitalist.com
In 2024, the US spent over $1 trillion on interest payments, accounting for 23% of federal revenue.
As of September 2024
In 2000, the country’s debt stood at $10.31 trillion and has since surged about 251% to the current level.
The debt spike beginning in 2000 was triggered by events such as the Afghanistan and Iraq Wars, the 2008 subprime crisis, and the COVID-19 pandemic.
Source: fiscaldata.treasury.gov
Between FY19 and FY21, US debt increased by about 50%, mainly due to tax cuts, stimulus programs, increased government spending during the COVID-19 pandemic.
Source: fiscaldata.treasury.gov
The US has never defaulted on its debt obligation, thus its repercussions remain unknown. However, a default would have a catastrophic impact on the US and foreign markets.
Source: fiscaldata.treasury.gov
Thanks for reading!
See next